Answer:
This is a form of artificial monopoly.
Explanation:
In artificial monopoly a large firm exists with smaller firms in the same market. The large firm does not have a comparative advantage in production efficiency bit still drives the competition out of business.
Large firms use restrictive measures that prevents new form from entering the market. The other type of monopoly is the natural monopoly.
Having exclusive rights to open a MacDonald's in the Carribean where you can construct as many locations as you want is called artificial monopoly. The firm has successfully barred other firms from opening a MacDonald's in the Carribean.
Answer:
Explanation:
divide the total taxes 960 by 365 (number of days in the year) to get per day tax which is 2.63$. Days from 1 January to April 15 are 105, these 105 days times 2.63$ =276.15.
so, now we have calculated the amount of taxable by seller at closing date and buyer will receive the same from seller i.e 276.15 $ .
Answer:
Accounting entity concept:
The basic idea behind this concept is that business and the owner are two different entities. Their transactions are to be recorded separately.
Going concern concept:
The concept is to have a view that the company is going to stay solvent in the future. That is we will have another accounting year in the future unless and otherwise we have evidence to the contrary.
Cost-benefit constraint:
It limits the amount of time to research the cost of an event if its benefits outweighs. In case of an immaterial event if its cost outweighs the benefits then that event can be forgone.
Expense recognition (matching principle):
The matching principle states that all the expenses are to be recorded based on the year they have been incurred rather than on the time they are paid.
Materiality constraint:
It states that any event that changes or effects the decision making of the user of financial statement should be recorded and vice versa.
Revenue recognition principle:
It states that the revenue is to be recorded in the period in which it has been incurred instead when it is collected. Accrual basis gives a more clear picture of the performance of the company.
Full disclosure principle:
It requires to disclose any information to be mentioned in the foot notes of the financial statements of the company that might affect the user of financial statement. This helps in identifying the methods used for accounting practices and any event that might effect the organisations future existence.
Cost principle:
To record the transactions based on their historical costs rather than making adjustments for fluctuations in market place.
You get to look at the progress of your business
Answer:
Single use plan
Explanation:
A single use plan is employed in tackling a particular organisational situation. This plan is only used once, because it is used to solve a specific situation and then discarded when the situation has been tackled.
A single use plan is utilized in situations that is unlikely to be repeated in the nearest future since the main purpose of the plan is to solve a particular problem.
The single use plan can be very precise in handling a particular situation.
